Travel Agents

Brexit, Hong Kong and disruption to blame for “challenging” start to FY20: Flight Centre MD

Global political tensions and disruption are to blame for a “challenging” start to FY20, according to Flight Centre’s managing director, Graham ‘Skroo’ Turner.

Speaking at the travel giant’s annual general meeting yesterday, Skroo said the first four months have been a “challenging period” as the company experienced “issues and disruptions that significantly impacted second-half results last year”.

“Our challenge so far this year has been translating solid top-line growth to the bottom line,” he said.

According to Skroo, there are a number of factors contributing to this including continued disruption to the Australian leisure business, a downturn in travel to the Dominican Republic (which is the biggest market for the brand’s US leisure customers), ongoing Brexit-related uncertainty, unrest in Hong Kong and underperformance in “some other areas”.

“Profit through to 31 October 2019 has been well down in comparison to a strong prior corresponding period, although TTV growth has been fairly strong,” Skroo said.

In Australia and New Zealand, Skroo said TTV had surpassed the prior-year record by 1.7 per cent in the brand’s corporate travel businesses, compared to 18 per cent globally.

However, leisure in Australia grew by 5.7 per cent, which is stronger than the global figure which sat at 4.5 per cent.

Online leisure sales in Australia doubled to more than $250million during the first quarter.

Flight Centre chairman, Garry Smith, also addressed the meeting, commenting on the diversity of the company’s board.

Smith said the board is currently made up of only 20 per cent women members, 25 if you exclude the company’s managing director and founder Graham ‘Skroo’ Turner.

This figure puts the company outside of the Australian Institute of Company Directors’ current target of 30 per cent female representation, Smith admitted.

“Some of our institutional investors and investor representative bodies such as the Australian Council of Superannuation Investors have adopted policies where they recommend a no vote on any director reappointments in companies that don’t meet their diversity policy target,” Smith said.

“That is currently the case for us and votes received in advance of the meeting regarding my reappointment to a certain extent reflect this point specifically.”

To reach that target, Flight Centre will have to either expand its current board by adding a female director or replace one of its current male directors.

“Our company has a good history of supporting diversity within our business and the board supports the target of 30 per cent female directors,” Smith said.

“It is our plan to meet that target.”

Smith said the board expects to appoint a woman director in the medium term, subject to a candidate meeting its targeted skills and being able to accept the role.

“In the past, we have been prepared to wait for the best director candidate to become available that could well be the case again in this instance,” he said.

Following his address, Smith was re-elected as director of the board, having served on the board for 12 years, the last five of which as chair.

Last month, Flight Centre set a target to make its senior leadership team 50 per cent female by 2020 at the brand’s annual Womenwise event.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Cruise Wrap: MSC to launch eco-conscious tours, cruise returns to bushfire-affected NSW South Coast + MORE!

If, like us, you’re avoiding a stockpile of emails accrued over the long weekend like the plague, this week’s Cruise Wrap is the perfect five-minute distraction.

Share

CommentComments

Technology

Sabre announces new deals with two hotel giants

The tech player has eked out fresh partnerships with two hotel behemoths, one of which has been in the news lately for controversial reasons.

Share

CommentComments

Destinations

Magnitude 7.7 earthquake strikes off the coast of Jamaica and Cuba

An earthquake that triggered a tsunami warning has hit off the coast of Jamaica, Cuba and the Cayman Islands, with reports alleging it was felt as far as Miami.

Share

CommentComments

Tourism

Aussie travel company shares take a hit amid Coronavirus fears

by Christian Fleetwood

As growing fears of the scale of coronavirus continue to reverberate across the world, Australian travel companies are among those taking hits to their share prices.

Share

CommentComments

Aviation

Pilot busted for writing racial slurs and pro-Trump graffiti in airport

The pilot was caught allegedly scrawling “TRUMP4EVER” around the airport, among other things. It is not confirmed whether the Trump comment was written inside a love heart with an arrow through it.

Share

CommentComments

Tourism

Instagrammer accidentally captures penguin porn while trying to take perfect selife

An Instagrammer has admitted to being so caught up in capturing the perfect selfie she failed to notice a pair of fornicating penguins had photobombed her shot.

Share

CommentComments

Hotels

Carb-themed hotel room opens in New York

If you’re celiac, gluten-intolerant or just trying to avoid deliciously unhealthy food, you should probably skip this one. Or, use it as an excuse to stock up on croissants like we did.

Share

CommentComments

Cruise

Cruise & Maritime Voyages joins CLIA Australasia, rejoins CLIA Europe

Did you hear champagne corks popping in the CMV offices this morning? Click here to find out why.

Share

CommentComments

Tourism

The Travel Corporation’s John Veitch exits

TTC’s Aussie CEO has announced he is flying the coop to take up a role outside of the travel industry.

Share

CommentComments

Midweek Interview

Midweek Interview with Reef House’s Ben Canham

This week, Reef House’s executive chef cooked us a feast while we picked his brain… just kidding! We devoured an entire tub of hummus and emailed him the questions.

Share

CommentComments

Aviation

Aviation Wrap: Delta’s world-first parallel reality experience, Boeing’s new jet takes flight + MORE!

With only four days of work, we’re welcoming this week with an Aviation Wrap, a handful of hobnobs and an overwhelming hangover.

Share

CommentComments

Destinations

Indonesia seeks massive $9.7bn investment alongside ‘10 New Balis’ project

It might be a few years away before you can sell a few equally wonderful alternatives to Bali, but keep these Indonesian destinations on your radar.

Share

CommentComments